Metro Bank

Corporate brand

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A United Kingdom retail and commercial bank built around customer-focused branches and digital banking services.

Last updated October 6, 2026

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Overview

Metro Bank PLC is a United Kingdom retail and commercial bank founded by Anthony Thomson and Vernon Hill in 2010. It was established as a challenger to the country's large incumbent banking groups and became the first new high-street bank to receive a UK banking licence in more than 150 years. The bank received its licence from the Financial Services Authority on 5 March 2010 and opened its first branch in Holborn, central London, on 29 July that year. The brand was designed around a highly visible branch model rather than a purely digital proposition. Metro Bank's stores were intended to provide extended opening hours, accessible service and a distinctive customer experience, supporting personal current accounts, savings, mortgages, lending and business banking. Its original expansion plan envisaged between 200 and 250 branches in Greater London within a decade. The bank also developed services for small and medium-sized enterprises, including through its acquisition of SME Finance in 2013, which was subsequently rebranded as Metro Bank SME Finance. Metro Bank's early years were characterised by heavy investment in branches, technology, staffing and customer acquisition. It raised substantial additional funding in 2012 and continued to report losses while pursuing growth. Management presented those losses as a planned consequence of building a new banking institution and expanding its customer and deposit base. The bank later broadened its lending and distribution activities through the acquisition of the RateSetter peer-to-peer lending business and the purchase of RateSetter's loan portfolio. A major turning point came in January 2019, when Metro Bank disclosed that it had incorrectly classified a portfolio of commercial loans for regulatory capital purposes. The error affected approximately 10% of its loan book and meant that the bank had not held sufficient capital against the relevant exposures. Metro Bank announced a £350 million capital raising and reduced its growth plans. The disclosure triggered a sharp fall in its share price, withdrawals by some large depositors and regulatory scrutiny. In December 2021, the Prudential Regulation Authority fined the bank £5.38 million over shortcomings in governance and controls connected with the risk-weighting and classification of commercial loans. The bank underwent further strategic and ownership changes after the 2019 difficulties. Dan Frumkin became chief executive in February 2020, while Robert Sharpe became chair in November 2020. Metro Bank agreed to acquire Retail Money Market Ltd, the company behind RateSetter, in 2020 and completed the purchase of the platform's loan portfolio in 2021. It also sold a £3.04 billion residential mortgage portfolio to NatWest in 2021, a transaction intended to support balance-sheet management and capital efficiency. In October 2023, Metro Bank completed a £325 million capital raise alongside £600 million of debt refinancing. Jaime Gilinski Bacal became the controlling shareholder with approximately 53% of the company. The transaction followed market speculation about potential takeover interest, including reported consideration by JPMorgan Chase and an offer said to have been rejected from Shawbrook. Metro Bank remains a UK-focused bank serving personal and business customers through branches and digital channels. It is authorised by the Prudential Regulation Authority and regulated by both the PRA and the Financial Conduct Authority. Its reputation combines challenger-bank innovation and a service-oriented branch proposition with the legacy of significant capital, governance and compliance challenges.

History

Metro Bank was established in 2010 as a new UK banking venture seeking to challenge the established high-street banks. Its founding concept emphasized a visible branch network, customer service, convenient opening hours, and a service culture influenced by challenger-bank models outside the United Kingdom. The bank’s launch was significant because the UK had seen limited entry by new full-service banks capable of competing directly for household and business deposits. In its early years, Metro Bank built its identity around branches that it called stores, combining face-to-face service with telephone, online, and later mobile banking. The business targeted personal customers as well as small and medium-sized enterprises. Current accounts, savings, mortgages, loans, business banking, and selected branch services formed the core of its proposition. Safe-deposit boxes and extended opening hours helped distinguish the brand from many conventional bank branches. Metro Bank expanded its network and customer base during the first part of the 2010s. Its strategy required substantial investment in premises, staff, technology, and regulatory capital before the branch network could achieve mature profitability. The bank subsequently became publicly traded in London, giving it access to public equity markets and a wider shareholder base. The bank encountered a major setback in 2019 when it reported errors related to the risk weighting of certain commercial loans. The issue raised questions about internal controls, financial reporting, governance, and the sustainability of the bank’s expansion strategy. Investor confidence weakened, senior leadership changed, and Metro Bank had to focus more closely on capital strength, lending discipline, risk management, and operating efficiency. The episode also illustrated the challenges faced by newer banks attempting to grow while competing with large, established institutions. Following the 2019 difficulties, Metro Bank’s strategic emphasis shifted toward strengthening the balance sheet, improving governance and controls, managing costs, and concentrating on relationships with personal and business customers. Like other UK banks, it has operated in an environment shaped by prudential regulation, changing interest rates, digital competition, consumer-protection requirements, and evolving demand for branch services. Metro Bank remains a UK banking brand serving personal and commercial customers. Its distinctive historical contribution is its attempt to make branch-based relationship banking central to a modern challenger-bank proposition rather than treating branches solely as legacy infrastructure. At the same time, the bank has continued to use online and mobile channels, reflecting the hybrid service model expected by contemporary banking customers.

2019
Loan risk-weighting disclosure
[2]Metro Bank investor relationsmetrobankonline.co.uk
The bank disclosed errors relating to the risk weighting of certain commercial loans, prompting regulatory scrutiny, leadership changes, and a strategic reassessment.
2016
Public listing
[2]Metro Bank investor relationsmetrobankonline.co.uk
Metro Bank became a publicly traded company on the London Stock Exchange.
2010
Metro Bank established
[3]Metro Bank about usmetrobankonline.co.uk
Metro Bank was founded as a new UK challenger bank focused on retail and business banking.

Products and positioning

A challenger bank positioned around relationship banking, accessible branches, extended opening hours, and a combination of physical and digital service.

Retail banking
Personal banking
Metro Bank’s personal-banking range includes current accounts, savings accounts, lending, mortgages, and credit cards. These products are supported through digital channels and, where available, branch-based service. The brand’s historical differentiation has been its emphasis on human assistance and accessible physical locations.
Commercial banking
Business banking
Business banking is a core part of Metro Bank’s proposition, serving small and medium-sized enterprises alongside broader commercial customers. Services include business current accounts, deposits, lending, and relationship support. Product eligibility, lending terms, and availability vary according to customer circumstances and the bank’s current policies.
Lending
Mortgages and lending
Metro Bank offers lending products including residential mortgages, personal loans, and business or commercial finance. Lending has been an important part of its attempt to develop relationships beyond deposit-taking. Terms and product ranges are subject to credit assessment, regulatory requirements, and periodic changes.
Ancillary banking service
Safe-deposit-box services
Safe-deposit boxes have been associated with Metro Bank’s branch proposition and provide customers with secure storage facilities at selected locations. Availability is location-dependent and should be confirmed directly with the bank.

Controversies

2021
Metro Bank fined £5.4m for reporting failures
The Bank of England's Prudential Regulation Authority fined Metro Bank £5.4 million for failures in its reporting duties, citing errors in regulatory reporting and related oversight, controls and resourcing. Metro Bank said it had improved its reporting processes and controls and strengthened risk management and governance.
Source
2019
Commercial-loan risk-weighting error
Metro Bank disclosed errors concerning the risk weighting of certain commercial loans. The matter caused substantial investor and regulatory concern and was followed by leadership changes, capital actions, and a review of the bank’s strategy and controls.
Source

2019
Reassessment of growth and capital strategyStrategy
Background
The disclosure of errors in the risk weighting of certain commercial loans created pressure to strengthen controls, capital planning, and governance.
Action taken
Metro Bank moved toward a more cautious growth model, with greater emphasis on capital strength, risk management, operational efficiency, and balance-sheet discipline.
Aftermath
The episode became a defining turning point in the bank’s development and contributed to changes in leadership and investor expectations.
Source

Recent events

2023
Metro Bank completes capital raise and debt refinancing[5]FCA因反洗钱交易监控问题对Metro Bank罚款en.wikipedia.org
M&A
The bank secured £325 million of new capital alongside £600 million of debt refinancing. Jaime Gilinski Bacal became the controlling shareholder with approximately 53%.
2022
Metro Bank mobile banking app outage[5]FCA因反洗钱交易监控问题对Metro Bank罚款en.wikipedia.org
Other
A failure affecting the mobile banking application from 6 to 8 October prevented customers from managing their accounts remotely.
2021
Metro Bank completes RateSetter loan-portfolio acquisition[5]FCA因反洗钱交易监控问题对Metro Bank罚款en.wikipedia.org
M&A
The bank acquired RateSetter's loan portfolio, valued at approximately £384 million, and continued the RateSetter brand while funding new unsecured personal lending from deposits rather than peer-to-peer investors.
2021
Metro Bank sells residential mortgage portfolio to NatWest[5]FCA因反洗钱交易监控问题对Metro Bank罚款en.wikipedia.org
M&A
Metro Bank completed the sale of a residential mortgage portfolio to NatWest under an agreement reached in December 2020.
2020
Metro Bank agrees to acquire RateSetter[5]FCA因反洗钱交易监控问题对Metro Bank罚款en.wikipedia.org
M&A
Metro Bank agreed to acquire Retail Money Market Ltd, the company operating the RateSetter peer-to-peer lending platform, subject to regulatory and shareholder approvals.

Sources14 sources

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